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Duterte ally a step closer to bagging Davao port project

/ 05:20 AM August 24, 2019

Davao businessman Dennis Uy’s Chelsea Logistics and Infrastructure Holdings Corp. won the endorsement of the Philippine Ports Authority (PPA) to pursue a P24-billion unsolicited offer to modernize and operate the Davao Sasa Port project in Mindanao.

Chelsea, which also submitted an offer to develop the Davao international airport, disclosed to the Philippine Stock Exchange that the PPA granted it an original proponent status for the 25-year Davao Sasa Port modernization project.

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The next step is for the proposal to undergo the approval process of the National Economic and Development Authority.

“We thank the PPA and the Department of Transportation for working closely with us in finalizing the requirements and design of this huge project,” Chelsea president and CEO Chryss Alfonsus Damuy said on Friday.

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“As a dominant player in the country’s shipping and logistics industry, Chelsea has been given the opportunity to further upgrade the supply chain management landscape of the country,” he added.

An original proponent status grants its holder a big advantage in the eventual competitive challenge for unsolicited offers. The status was granted on Aug. 19, Chelsea said.

The proposal was structured as a joint venture with the PPA. Development will span five phases, with the first two phases to be completed by 2021 and 2023, respectively.

“The project targets to deliver, among others, port capacity expansion, flow improvement of waterborne commerce and interisland seaborne commerce and foreign trades, and streamlining, enhancement and optimization of port maintenance and operations,” Chelsea noted.

“The project will also promote regional development through the dispersal of industries and commercial activities throughout the region,” it added.

The Davao Sasa project was among the Aquino-era public-private partnership (PPP) projects that were shelved by the Duterte administration.

Previously, there were five groups qualified to bid for the Davao Sasa PPP project.

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These were San Miguel Holdings Corp.-APM Terminals Management (Singapore) Pte. Ltd. consortium, businessman Enrique Razon’s International Container Terminal Services Inc., Asian Terminals Inc.-DP World FZE consortium, Portek International Pte. Ltd.-National Marine Corp. consortium, and Bollore Africa Logistics.

Chelsea, a part owner of logistics giant 2GO Group Inc., is also diversifying into telecommunications. It is a minority shareholder of a venture that includes affiliate Udenna Corp. and China Telecom to launch the country’s third major mobile player called Dito Telecommunity.

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TAGS: Chelsea Logistics and Infrastructure Holdings Corp., Davao Sasa Port project, Dennis Uy, Philippine Ports Authority
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